TD CHEQUE FRAUD PROTECTION (CFP) SERVICE … On-Line... · td cheque fraud protection (cfp) service...

TD CHEQUE FRAUD PROTECTION (CFP) SERVICE

ONLINE RECONCILIATION FOR POSITIVE

PAY ACCOUNTS

CUSTOMER GUIDE July 2011

CFP ON-LINE RECONCILIATION FOR POSITIVE PAY version 8

1.0 ............................................................... 3 Type of CFP Self-Service Reconciliation2.0 .................................................................................... 3 Reconciliation Report Suite

2.1.0 ............................................................... 4 Report Print Orientation and Layout2.2.0 ............................... 4 Positive Pay Sample Account – ABC Company Limited

3.0 ......................................................... 4 Report Retrieval through CFP Report Screen4.0 ................................................... 7 Issue File Reconciliation Report Suite - Primary

4.1.0 .......................................................... 7 Issued Reconciliation Summary Report4.2.0 ............................................................. 8 Issued Reconciliation Details Report4.3.0 Illustration of Issued Reconciliation Report Usage ............................................. 8

4.3.1 .......... 8 Issue File Reconciliation Summary Report – Microsoft Excel File4.3.2 ..................... 9 Issued Reconciliation Details Report – Microsoft Excel File

4.3.2.1 ....................... 9 New Issues (File Transmission and Online Upload) Tab4.3.2.2 ........................................ 10 Total Paid and Matched Item Microsoft Tab4.3.2.3 ........................................................................... 11 Issued Items Stop Tab4.3.2.4 ...................................................................... 12 Issued Items Deleted Tab4.3.2.5 ................................................................ 13 Total Outstanding Issues Tab4.3.2.6 . 14 Continuing the ABC Company Illustration for December Reporting

5.0 .................................................. 15 Paid File Reconciliation Report Suite – Primary5.1.0 ........................................................... 16 Paid Reconciliation Summary Report5.2.0 ............................................................... 16 Paid Reconciliation Details Report5.3.0 .................................. 16 Illustration of Paid File Reconciliation Report Usage

5.3.1 .................................. 16 Paid Reconciliation Summary Report – Excel File5.3.2 ................ 17 Bank Reconciliation Using the Paid Reconciliation Summary5.3.3 ....................................... 19 Paid Reconciliation Details Report – Excel File

5.3.3.1.1 Paid Tab ................................................................................................. 19 5.3.3.1.2 Paid Tab Illustration (Part A)................................................................. 20 5.3.1.2 Paid Tab Illustration (Part B).................................................................... 21 5.3.3.2 ...... 22 Paid-No-Issue Cheques – For Positive Pay Subscribed Customers5.3.3.3 ................................................................ 22 Return and Adjustment Tabs5.3.3.4 ............................. 22 Illustration of the Paid Activity for ABC Company

6.0 ................................................................. 23 Reconciliation Reference Report Suite

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1.0 Type of CFP Self-Service Reconciliation A suite of reports is available for TD Cheque Fraud Protection (CFP) Service customers to facilitate self-service reconciliation for the following: The paid files processed by the CFP Service against the CDA (business account)

statements for the paid cheques debited to the bank account The outstanding issue file balance in the CFP Service for the issued cheques not

yet paid

2.0 Reconciliation Report Suite The reconciliation reports contains a detailed record of the transactions processed by the system within the user defined date range. These reports represent the cheque payable activities of a CFP account beginning with the creation of the cheque information loaded to the reconciliation system (for positive pay account) through file or online input, and subsequently the paid file processing for the cheques posted to the system (positive and negative pay accounts), including minor adjustment, correction and return transactions. The reports are generated in Microsoft Excel file format and can be saved to a separate drive. This provides you with the flexibility necessary to perform the reconciliation suitable to your cash management needs. For CFP Service customers who subscribe to the Positive Pay service plan the following reports will be available for download via the report screen: Issued Reconciliation Summary – Primary Issued Reconciliation Details – Primary Pending Issues – Primary Paid Reconciliation Summary – Primary Paid Reconciliation Details – Primary Outstanding Stops and Voids – Reference Deleted – Reference

Primary Reports are core reports that have all the data transactions associated with the cheques processed within the defined date range, which are required for account reconciliation. Reference Reports are non-core reports with specific data relevant to the primary reports which can be used as a monitoring tool and for cash management purposes.

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2.1.0 Report Print Orientation and Layout The following standard Microsoft Excel file print orientation has been set up on the header of the reports. To change the header information, select the header/footer of the page set-up tab under file menu bar. Left Section – name of the report applicable to the excel tab Center Section – Toronto Dominion Bank Right Section – # page of page(s), Print date and time 2.2.0 Positive Pay Sample Account – ABC Company Limited The following sample account will be used throughout the document to illustrate the reconciliation report suite and its usage. ABC Company Limited, 45 New Street, Toronto Account 123456 Defined Date Range – November 1 to 30, 2008

3.0 Report Retrieval through CFP Report Screen A drop down report list is available to you once the account information (name and account) is selected. The applicable report suite that is available to you is dependent upon the service option selected (Positive Pay or Negative Pay). (1)

(1)

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A defined date range is available to you to select the desired reconciliation period for each report. (2)

(2)

Once the desired report is selected, a message at the top of the page will appear informing you the report is now available under the Report Retrieval tab. The message will provide you with a request number that will identify your report request on the Report Retrieval Page. (3)

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(3)

Once the desired report is selected from the screen below, a Microsoft Excel file download command will appear allowing you the flexibility to open and view immediately, to save to a separate drive, or to cancel and end the job.

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4.0 Issue File Reconciliation Report Suite - Primary Issue File Reconciliation represents the history of cheque information transmitted to the CFP Service for a CFP account, and any subsequent processing transactions associated with the issued records. The reconciliation system will compare the successive transactions to the issued cheques within a defined date range and will update the record status based on the following activities: Paid File Load – for cheques posted to the bank account Stop Payments, Voids and Deletes – CFP customer initiated actions through

batch file transmission or online input Returns – CFP customer initiated action through online input and return decisions

for exception items. The Issue file reconciliation report suite allows the CFP positive pay customer the flexibility to reconcile the issued account activities using the “Issued Reconciliation Summary” report for any defined date range and also to monitor the outstanding cheques not yet posted to their bank account using the “Issued Reconciliation Details” report. 4.1.0 Issued Reconciliation Summary Report The Issued Reconciliation Summary report contains the accumulated total of all transactions processed by the CFP Service associated with the issued cheques, and any unmatched records remaining outstanding for a CFP positive pay account within the defined date range. There are 9 lines reporting the total item count and amount associated with the transactions of the issued cheques within the defined date range.

1. Previous Outstanding Issues- represents issued cheques not yet posted to the bank account which remained outstanding at the period end prior to the defined date range.

2. New Issues (File Transmission) – represents issue files transmitted by you within the defined date range.

3. New Issues (Online Upload) – represents issue records created online by you via the CFP Web within the defined date range.

4. Issue Items Returned – represents issued cheques which have been paid and cleared prior to the defined date range and returned within the defined date range, causing the issued items to be outstanding once again.

5. Total Paid and Matched Items – represents issued cheques (new issues and outstanding carried forward) that have been paid and cleared within the defined date range, and are thus no longer outstanding.

6. Issued Item Stops – represents stop payments lodged against the issued cheques (new issues and outstanding carried forward) within the defined date range, which are no longer outstanding.

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7. Issued Item Voided – represents issued cheques (new issues and outstanding carried forward) voided within the defined date range, which no longer are outstanding.

8. Issued Items Deleted – represents issued cheques (new issues and outstanding carried forward) deleted within the defined date range, which are no longer outstanding. It does not include stop payments which were deleted during the defined date range or issued cheques which were voided within the defined date range.

9. Total Outstanding Issues – represents the new issues and outstanding cheques that have not been stopped, voided, deleted or paid within the defined date range, and thus remain outstanding, including returns of previous period paid and cleared cheques. The accumulated total count and amount will be carried forward and reported as previous outstanding issues in the next reporting period.

4.2.0 Issued Reconciliation Details Report Issued Reconciliation Details Report contains the breakdown of the transactions from the Issued Summary report. There are 8 tabs within the excel file with each tab representing the details of the processing activities of issued cheques for a CFP positive pay account. Previous Outstanding Issues are not included in the report since the total in the summary report is a roll forward value from the Total Outstanding Issues of the previous period. 4.3.0 Illustration of Issued Reconciliation Report Usage 4.3.1 Issue File Reconciliation Summary Report – Microsoft Excel File Since ABC Company Limited is a brand new CFP account, there will not be any previous outstanding issued cheques carried forward to the period selected. Below are the trails of the processing for the month of November for ABC Company Limited account

12 new issues totaling $221.00 loaded through batch file transmission 5 new issues totaling $169.00 created online 3 cheques totaling $36.00 were paid 5 stop payments lodged totaling $142.00 2 deletions totaling $26.00 7 remaining issues for $186.00 to be carried forward as “Outstanding Issues”

for the next period’s opening balance or in the previous outstanding issues line

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Accumulated total of items and amount

Item (2), (3), (4) Addition to the issue file balance

Item (5), (6), (7), (8) Reduction to the issue file balance

Item 9 represents the accumulated total of items and amount of outstanding issued cheques not yet posted to the bank account and processed by the reconciliation system

4.3.2 Issued Reconciliation Details Report – Microsoft Excel File The details of the issued cheques are reported based on the processing activities of the reconciliation system. Each record is tagged with a status and recorded in the system and the audit trail is tracked to allow search and reporting capability. The following list of selected issued cheques will be used to illustrate the transactions processed by the reconciliation system and the reporting structure within the Issue File Reconciliation Details report. Account Name – ABC Company Account Number – 123456 Defined Date Range – Nov 1, 2008 to Nov 30, 2008 Item # Serial Number Issued Amount Issued Date Load Date Source Input (1) 00000099994 $94.00 11/12/2008 11/18/2008 File Transmission (2) 00000100004 $ 4.00 11/13/2008 11/18/2008 File Transmission (3) 00000100006 $ 6.00 11/13/2008 11/19/2008 File Transmission (4) 00000100014 $14.00 11/19/2008 11/19/2008 File Transmission (5) 00000100018 $18.00 11/18/2008 11/19/2008 Online Upload (6) 00000100019 $19.00 11/19/2008 11/19/2008 Online Upload

4.3.2.1 New Issues (File Transmission and Online Upload) Tab

Issued cheque information is reported in the same way in the new issues report tab for file transmission and online upload. For illustration, only the New Issues (File Transmission) is presented below. Successive transactions of the illustrated issues will be presented based on the transactions processed by the system.

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For illustration used to demonstrate the relative reporting of the successive transactions of the issued cheques. Not part of the reporting column

Total item count and amount Same total reported in the summary report

1. Serial # is unique to each cheque, the system will reject any duplicate issue record 2. Issued Amount is the amount transmitted to the system. May not necessarily be the same as the actual

negotiated cheque amount 3. Issue Date is the date on the issue file transmitted to the system 4. Payee is the name to whom cheque is payable (transmitted in the issue file) 5. Load Date is the processing date stamped by the system. May not necessarily be the same as the

cheque issue date

4.3.2.2 Total Paid and Matched Item Microsoft Tab

The paid cheques reported in the Total Paid and Matched Items tab represents cheques that have issue records matching the cheque information of account, serial, transit and amount loaded into the reconciliation system*. Paid data having the exact account, serial, and transit match, but with a difference in the amount greater than $20.00 will be corrected, certified and recleared. The amount posted to the bank account will be reported in the “Paid Amount” (3) column. When the encoding error is corrected, the issued amount will be reported in the “Issued Amount” column**. The same process will be applied for amounts $20.00 and under, however these records will be automatically adjusted by the bank***. The trailer total item count and amount represents the accumulated total of items paid with matching issued records in the system. Any duplicate paid record will not be reported in this tab because it has not been matched. If a cheque is paid which has no matching issue on file, this cheque would be considered paid-no-issue and would not be reported in this tab. The trail of all paid information will be reported in the Paid Reconciliation Report Suite discussed in later sections.

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For illustration of the successive paid transactions processed for the issues discussed. Not part of the reporting for the tab

Total item count and amount Same total reported in the summary

1. Paid Date is date the cheques were posted to the bank account and the paid data loaded and CFP Service

2. ISN Locator is the unique Item Sequence Number sprayed on the back of the cheque when it was processed by the bank

3. Paid Amount is the amount posted to the bank account and processed by the CFP Service. This may not be the same as the cheque issue amount you transmitted or loaded manually on to the system

* Selected item #4 – cheque for $14.00 with a Nov 19, 2008 issue date was transmitted to the system and subsequently paid on the same day with the exact match, resulting in no change to the issue file balance reconciliation ** Selected item #2 – cheque transmitted amount was $4.00, but the actual cheque payable was $4,000.00 and posted to the bank account. This encoding error was corrected. *** Selected item # 5 – cheque amount was $18.00, but the cheque was processed and posted to the account by the bank for the wrong amount $10.00. An automatic adjustment of the amount to reflect the issued amount was processed by the system

4.3.2.3 Issued Items Stop Tab

The Issued Items Stop tab represents stop payments lodged on the issued cheques by the customer and loaded to the CFP Service through file transmission or manual online creation via the CFP Web*. Once a stop payment is placed on the issued cheque, it will no longer be reported as outstanding and will not be carried forward in either of the Issue Reconciliation Reports (Summary and Details). The CFP Service recognizes the stop payment status on issued cheques when a cheque is initially processed as paid by the system, and returns that cheque to the negotiating bank. The cheque details of the payment and return trail are reported in the Paid Reconciliation Report suite to be discussed in the paid file reconciliation section.

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Stop date is the date the stop payment was lodged on the issued cheque by the customer


For illustration of the successive stop payment transactions processed for the issues discussed. Not part of the reporting for the tab

* Selected item #3 – cheque issue date Nov 13, 2008 loaded to the system on Nov 19, 2008. Stop Payment lodged on the cheque on Nov 19, 2008. In the illustration, the customer issued the cheque on Nov 13, 2008 but did not transmit it to the reconciliation system. On November 19, 2008, the customer lodged a stop payment on the cheque. To maintain the audit trail, the customer transmitted both the issued cheque and the stop payment information on the same day. For issue file reconciliation, it represents an increase and a decrease to the total count and amount resulting in no change to the current period outstanding issue cheques.

4.3.2.4 Issued Items Deleted Tab

The Issued Items Deleted tab represents issued cheques deleted by the customer that were originally loaded to the CFP Service through issue file transmission or manual online creation via the CFP Web*. Once a cheque is deleted, it will no longer be reported as outstanding and will not be carried forward in either of the Issue Reconciliation Reports (Summary and Details). The CFP Service recognizes the delete status on the issued cheques and flags them as Paid-No-Issue exceptions when a cheque is initially processed as paid by the system. If you choose not to pay the item, it will be returned to the negotiating bank. The cheque details of the payment and return trail are reported in the paid reconciliation report suite to be discussed in the paid file reconciliation section.

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Delete date is the date the issued cheque is deleted by the customer

For illustration of the successive delete transactions processed for the issues discussed. Not part of the reporting for the tab

* Selected item #6 – cheque was created online on Nov 19, 2008 and subsequently deleted on Nov 19, 2008. The reconciliation system tags the issued and the deleted record status to maintain the audit trail for reporting and search functionality. For issue file reconciliation, it represents an increase and a decrease to the total count and amount resulting in no change to the current period outstanding issue cheques.

4.3.2.5 Total Outstanding Issues Tab

Total Outstanding Issues tab reports the details of issued cheques that did not have any successive transactions processed to change the record status to paid, stop, void or delete, and are thus assigned outstanding status*. Issues that have been matched with records in the initial paid file processing and have been flagged as exceptions awaiting a pay or no pay decision on the last business day of the period (November 30) will be tagged with Pending Status and reported in the Pending Items report. These issued cheques will be considered outstanding at the period end due to timing difference and may be considered as variances between the CFP Service Paid File Report and the bank account statement. The accumulated total item count and amount will be reported in the previous outstanding issues line in the summary report for the next reporting period.

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For illustration of the outstanding issued cheque not having any successive matched transactions. Not part of the reporting for the tab

* Selected item #1 – cheque was issued on Nov 12, 2008 and file loaded to the system on Nov 18, 2008. For the defined date range period (Nov 1 – Nov 30), no successive transactions processed matched this issue record resulting in the cheque being outstanding.

4.3.2.6 Continuing the ABC Company Illustration for December Reporting

This section illustrates the Issue File Reconciliation for the Issued Items Returned or Voided tabs of the Details Report [item (2) and item (4) in the Issue File Reconciliation Summary screen shot]. . A listing of November’s outstanding issued cheques is displayed to demonstrate the audit trail of the CFP Service’s successive transactions leading to the next reporting period.

Defined Date Range – Dec 1, 2008 to Dec 31, 2008 Item # Serial Number Issued Amount Issued Date Load Date Source Input (1) 00000100014 $14.00 11/19/2008 11/19/2008 File Transmission (2) 00000099994 $94.00 11/12/2008 11/18/2008 File Transmission (3) 00000100010 $10.00 11/17/2008 11/18/2008 File Transmission

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For illustration of the successive return of paid and matched, and void transactions processed. Not part of the reporting for Issued File Reconciliation Summary report

(1) November total outstanding issues carried forward to December reporting period as previous outstanding issues (2) The cheque was issued and paid on Nov 19, 2008, and returned due to materially altered and forged endorsement reason on Dec 09, 2008, which changed the paid record status to outstanding for December reporting period. (3) The cheque was outstanding as of Nov 30, 2008, and paid on Dec 1, 2008. The ISN locator is blank because the paid transaction was posted manually online. (4) The cheque was outstanding as of Nov 30, 2008 and subsequently voided by the customer on Dec 2, 2008 changing the outstanding record status to void.

5.0 Paid File Reconciliation Report Suite – Primary Paid File Reconciliation represents those cheques that have been posted to the bank account and processed by the CFP Service, any adjustments for $20.00 and less, as well as any returns. The paid file reconciliation report suite allows the CFP Positive and Negative Pay customers the flexibility to perform cheque reconciliation within the Microsoft Excel worksheet to reconcile against the bank statement. The report can also be used for your own analysis.

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5.1.0 Paid Reconciliation Summary Report The Paid Reconciliation Summary report contains the accumulated total count and amount of cheques processed by the CFP Service, which have been posted to your bank account, as well as any adjustments, corrections and returns processed to your bank account and the CFP Service within the defined date range.

5.2.0 Paid Reconciliation Details Report The Paid Reconciliation Details report contains the breakdown of the transactions from the summary report. There are 3 tabs within the Microsoft Excel file with each tab representing the details of the CFP Service’s processing activities associated with the paid files, including adjustment and returns. 5.3.0 Illustration of Paid File Reconciliation Report Usage 5.3.1 Paid Reconciliation Summary Report – Excel File The screen shot below shows:

11 cheques totaling $4,150.00 were processed by the system initially as paid 7 cheques totaling $104.00 were subsequently returned to the negotiating

bank $8.00 adjustment ($20.00 or less) on 1 cheque 4 cheques for $4,054.00 tagged as final paid status in the system

Item (2) is a reduction to the total presented items (1) Item (3) $ amount can either be an increase (no sign) or decrease (- minus sign) to the total presented items (1) Item (3a) item count is not included in the Total Paid Item count since the items are paid with amount adjustment

1. Total Presented Items represents the cheque amount posted to the bank account and processed by the reconciliation system Any exceptions are presented to the customer for pay or return decision. 2. Returned items represent return decisions for the exception cheques 3. Adjusted items represent amount adjustments of $20 or less 4. Total Paid Items represent the cheques reported paid as the final status in the system

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5.3.2 Bank Reconciliation Using the Paid Reconciliation Summary Let’s now use the ABC Company November bank statement to reconcile the total amount of cheques debited to the bank account against the Paid Reconciliation Summary Microsoft Excel file. The yellow, blue and grey highlights represent specific type of transactions associated with the reconciliation of debit and credit amounts between the bank statements and excel file.

o Yellow Highlight – CFP List Total represents the presented lump sum paid file loaded to the system by processing date

o Blue Highlight – CTS Deposits and RTN STOPPMT represents cheques returned to the negotiating bank by processing date

o Grey Highlight – CFP Adjust represents the $20 and under adjustments for the presented cheque amount by processing date

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Note: The CDA account reconciliation illustration above is a sample only for this particular scenario used to demonstrate the relationship of the specific transactions between the CDA account statement and the reconciliation system and is not representative of the standard process for customers using the report for self-service. CDA Statement Reconciliation Total CFP debits from your bank statement represents the accumulated debit total of

CFP List Total and debit adjustments ($20 and less, and debit amount corrections) relating to the presented cheques.

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Total CFP credits from your bank statement represents the accumulated credit total for cheques returned to the negotiating bank, and credit adjustments ($20 and less, and credit amount corrections) relating to the presented cheques.

Total CFP debits and credits to be posted represent timing differences for returns and adjustments that were processed by the CFP Service but not posted to your bank account during the reconciliation period selected.

Difference represents the difference between the calculated debit total from your bank statement balancing and the Total Paid Items line on the Paid Report.

o Explanation could be the result of the difference arising from one of the following: CFP debits or credits processed to the bank account and not processed

by the reconciliation system Wrong debit/credit amount posted either to the bank account or the

CFP Service 5.3.3 Paid Reconciliation Details Report – Excel File The details of the paid, return and adjustment transactions are reported within the 3 tabs (Paid, Returns, and Adjustments) of the Paid Reconciliation Details Microsoft Excel file. To continue with the activities of the ABC Company sample account, the following list of selected November issued cheques will be used to illustrate the paid transactions and the subsequent adjustments and returns processed by the system, as well as the reporting structure within the Paid, Return and Adjustment tabs of the Paid Reconciliation Details Report. Item # Serial Number Issued Amount Issued Date Paid Amount Paid Date (P-1) 00000100008 $ 8.00 11/13/2008 $ 8.00 11/17/2008 (P-2) 00000100010 $ 10.00 11/17/2008 $ 10.00 11/18/2008 (P-3) 00000100011 $ 11.00 11/17/2008 $ 11.00 11/18/2008 (P-4) 00000100025 $ 25.00 11/18/2008 $ 25.00 11/19/2008 (I-2) 00000100004 $ 4.00 11/13/2008 $ 4,000.00 11/18/2008 (I-5) 00000100018 $18.00 11/18/2008 $ 10.00 11/20/2008

5.3.3.1.1 Paid Tab

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A

Paid without issued record at time of paid file processing

For illustration on the accumulated total of columns 5, 6, 7, 8. Not part of the reporting for the tab

B

5.3.3.1.2 Paid Tab Illustration (Part A)

1. Account Number CFP customer account number 2. Serial Number Unique serial number for each cheque 3. Paid Date Date the paid file data was loaded and processed by the

reconciliation system

4. ISN Locator The unique Item Sequence Number sprayed on the back of the cheque when it was processed by the bank

5. Amount The amount posted to the CDA account and processed by the system (May not be the same as the cheque issued amount for positive pay account customer).

6. Difference The difference between the amount posted on the initial paid file load (5), and the cheque issued amount input via file or online (8). This is only applicable to positive pay account customers

7. Adjustment Amount Adjustments of $20.00 and less 8. Issued Amount The cheque issued amount loaded to the CFP Service via file

transmission or online creation via CFP Web. This is applicable to positive pay account customers only. It may not be the same physical cheque amount negotiated. For negative

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pay customers, this column will be blank.

9. Issued Date The cheque issued date provided in the file transmission or online creation. It may not be the same date as the load date. This is applicable to positive pay customers only.

10. Return Reason The return reason code selected by you when a return decision is made.

11. Payee The name of the entity to which the cheque is payable. For positive pay account customers only. The column will be blank for negative pay customers

12. Return Date The date the return decision is made by you on the system, up to the cut-off time ((12:00 pm ET for USD items and 2:00 pm local time for CAD items). . If you do not return the item, it will retain its ‘paid’ status. If the cheque was cleared out of region, the return may take two days and during this time, the Paid Reconciliation Detail will show the cheque as paid and the issue item will still be outstanding.

5.3.1.2 Paid Tab Illustration (Part B)

Total # of Items The accumulated total number of paid

cheques (list total or individual item) posted to the bank account (column 5 ).

Total Presented Amount The accumulated total amount of paid cheques (list total or individual amount) posted to the bank account (column 5).

Total # of Paid and Matched Items The accumulated total number of paid cheques matched with issued data (positive pay customers) with the same serial number (column 8).

Total Paid and Matched Amount The accumulated total amount of paid cheques matched with issued data (positive pay customers) with the same serial number, including previous paid cheques that are no longer outstanding (duplicate). The amount will not appear for stop payments, voids, deletes and paid cheques with no issue record (PNI) on file at the time of paid file processing .

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.

5.3.3.2 Paid-No-Issue Cheques – For Positive Pay Subscribed Customers

The CFP Service searches for an issued record in the database when the paid file is loaded. The paid record will be flagged as an exception when it does not find a match with an issue record in the CFP Web and will be referred to the customer for a pay or return decision. Since the CFP Service was not able to match the paid cheque with an issued record on file, it will be considered a paid with no issue record (PNI) and the amount will not appear in the issue amount (column 8). You can still decide to pay or return the cheque. However, when the customer decides to pay the cheque and subsequently creates an issue record in the system, the issue record in question will not match with the paid record and will be considered a new issue and be included as part of the outstanding issued cheques. Only deletion of that new issue record can remove it from outstanding status.

5.3.3.3 Return and Adjustment Tabs

The transaction details of the return and adjustment tab are extracted from selected data on the paid tab. The paid cheques with information appearing under the return reason and return date columns are reported in the return tab and the paid cheques with amounts appearing under the adjustment column are reported in the adjustment tab. The columns applicable to the return and adjustment data are reported in their respective tabs. The breakdown of the return and adjustment transactions in separate tabs provides better reporting of the audit trail of the paid transactions, allowing you to manage the reconciliation process more effectively.

5.3.3.4 Illustration of the Paid Activity for ABC Company

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The final paid record status matching issue cheques will also be reported in the issue file reconciliation report suite. The information below (Paid Tab) is an extraction from the paid tab to illustrate the relationship between the all reconciliation reports

(P-1) Cheque for $8.00 was issued on Nov 13, 2008 and matched with a paid record with an exception for customer pay/return decision, which the Material Altered Amount was selected as the return decision (P-2) Cheque for $10.00 was issued on Nov 17, 2008 and matched with a paid record with an exception for customer pay/return decision, which the Forged Endorsement was selected as the return decision (P-3) Cheque for $11.00 was issued on Nov 17, 2008 and a stop payment lodged on Nov 17, 2008, which was paid on Nov 18, 2008 and returned as Payment Stopped (P-4) Cheque for $25.00 was issued on Nov 18, 2008 and matched with a paid record. However, the customer decided to return the cheque as incorrect amount and on Nov 26, 2008 the cheque was paid and the system flagged it as an exception for customer pay/return decision, which the Duplicate was selected as the return decision (I-2) Cheque for $4.00 was issued on Nov 13, 2008 and matched with a paid record with an exception for customer pay/return decision, which the pay decision was selected. However, because the paid amount is different from the issue data in the system, the amount trail will be reported under the issue and difference amount columns for the issued amount and the net difference between the paid and issued amount (I-5) Cheque for $18.00 was issued on Nov 18, 2008 matched with a paid record with an automatic minor difference adjustment; the amount trail will be reported under the issue, adjustment and difference amount columns

6.0 Reconciliation Reference Report Suite A subset of Outstanding Stops and Voids, and Deleted Microsoft Excel file reports is available for you to use as a reference tool for managing your stops, voids and deleted records. You will select a cut off date range for outstanding stops and voids and a

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defined date range for deletes, which allows you the flexibility to manage the size of the Microsoft Excel file and data.

(1, 2) Deletion of stop payments/voids lodged on issued cheques will not be reported in the Issue File Reconciliation Report Suite since the stop payment/void action resulted in the cheques being no longer outstanding (both transactions cause a decrease in the number of outstanding issued records). The ‘Deleted’ report details all records with a deleted status within the date range defined by you. The ‘Outstanding Stops and Voids’ report details only records with a stop payment/void status within the defined end date.

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